Workplace Retention Factors

Employee retention is strongly connected to employee satisfaction with the workplace, management and overall organization. There are several ways for employers to show up for employees and enhance the workplace experience, leading to happier and more engaged employees. Such employees believe in what the organization stands for and are eager to help contribute to the company’s success.

Since the overall employee experience matters, employers can make retention efforts at pivotal stages or aspects of an employee’s life cycle at the organization. This section will explore the experiences of an employee’s tenure and how they can significantly impact retention for better or worse. Employers should consider how their overall employee experience measures up and how they can optimize or improve to retain more employees.

Keep in mind that this section is not an exhaustive list of every aspect of an employee’s experience, but rather topics that often significantly impact employee retention.

Onboarding

A common reason for leaving an organization is a poor onboarding process. The first weeks on the job are critical because the relationship between a new hire and their employer is vulnerable. An employee’s first 90 days are arguably the most important ones for retention, so employers should ensure they have structured onboarding and orientation processes in place.

Orientation is the first chance to follow through on interview promises and set up new employees for success. Ongoing onboarding helps develop the employee experience and build a positive reputation among current and prospective employees. According to a Robert Half & Associates survey, 1 in 4 employees quit during their first 90 days on the job. The main reasons surveyed employees cited were that expectations and goals of the day-to-day job were unclear and that training stopped after initial onboarding.

If employers were accustomed to onboarding new hires in person, the pandemic definitely ushered in major procedure and technology changes. While some organizations are back to the on-site workplace, many employers have embraced the process of onboarding employees remotely. Remote or hybrid employers need to be intentional with their onboarding experience and use any pandemic workflow breakdowns and lapses to help optimize hiring and onboarding processes for post-pandemic employees. Here are some general steps for employers to take with new employees:

• Share company goals and values with new employees.

• Encourage teams to show or explain their jobs to new members simultaneously.

• Help new hires understand that what they will be doing matters to the organization and that their performance will make a difference.

• Illustrate the impact of new employees’ roles by encouraging them to own their work and take pride in what they do.

11

• Keep all aspects as consistent as possible. Understandably, onboarding may vary by role, team or department, but overarching themes are critical to success.

Those general steps will land even better if ownership and accountability are already built into the company’s values and culture.

The bottom line is that employees should be guided through well-thought-out, uniform onboarding experiences to be properly welcomed to the organization and set up for success. The better start with the company, the better the chances the employee will stick with the organization.

Employee Engagement

Nearly three-quarters of workers in the United States are not engaged. Additionally, studies have shown that companies with a high level of employee engagement are more likely to retain their employees. Although happiness is an important factor in employee engagement, workplace elements such as communication, collaboration and well-being need to be supported to create a truly engaged team. In general, a sense of belonging is a critical influence on employee engagement.

Employee engagement can be driven by company culture, internal communication, managerial styles and trust in a company’s leadership, goals and vision. In today’s workplace, manager recognition can significantly drive employee engagement.

Employees want to know that their work is meaningful and their ideas are heard and respected. Employees are more likely to stay at organizations where they feel that their work is valued and appreciated and where they are nurtured and encouraged to grow in their careers.

Employee Communication

How an organization communicates with its employees has a tremendous impact on the overall workplace experience and retention. Effective communication keeps employees informed, keeps employees engaged and gives employees a voice for feedback, debate and discussion. Conversely, ineffective communication may increase the chances for misunderstandings, break employee trust and, ultimately, damage relationships between employees and organizational leadership.

12

The pandemic has reinforced how important it is for organizations to provide concise, honest and timely employee communications. Organizational leaders must be transparent in companywide communication. Just as organizations share exciting news and successes, it’s equally important to be transparent about failures and challenges instead of hiding them. The pandemic caused many employees to worry about their health and job security, but solid communication can make workers feel more at ease and kept in the loop. With any communication, employees want to be engaged, respected and supported.

When employees can openly communicate with leadership and discuss their issues or concerns, their satisfaction rates tend to be higher. Employees can create a culture of open communication by welcoming employees’ feedback and requests, which can help employees value both the organization and their work more. All of these factors can contribute to higher employee retention.

Learning and Development

As organizational needs evolve, employees must have the necessary skills to succeed and grow. Savvy employers are using or adopting a learning and development strategy to address today’s talent shortages and skills gaps.

Learning and development opportunities matter to employees, who are more likely to stay with an organization if they feel it is investing in their careers. Most employees are willing to learn new skills to remain employable and find companies more appealing if they offer skills training. One such type of professional development is upskilling. Upskilling refers to teaching current employees new skills to succeed in their current job. With upskilling, an employer invests in continuous learning efforts to teach employees new skills to succeed in their current role. Upskilling initiatives vary depending on the organization, but common ways employers can implement upskilling initiatives including offering microlearning opportunities, in-person training sessions or virtual learning.

Upskilling is just one form of employee development. Other initiatives that employers can consider include:

• Individualized learning plans

• Career pathing

• Mentorship programs

• Tuition assistance

While learning and development initiatives can help close the skills gap, these efforts can also help engage and retain top talent. Ideally, employees are challenged to learn new skills for personal growth when it doesn’t require a significant investment out of their own pockets. Employers can close skills gaps, boost employee engagement and retention, and reduce turnover costs. As such, learning and development efforts go hand-in-hand with employee retention.

13

Remote and Hybrid Arrangements

It’s important to carefully and thoughtfully address and develop pandemic return-to-work plans to reflect what’s best for the organization, industry and overall employee experience. As organizations reopen or explore their new workplace normal, employees are reluctant to return now that they’ve experienced greater flexibility and autonomy. As a result, employees are expecting or searching for remote and hybrid work opportunities. By definition, a hybrid workplace is a flexible model designed to support a distributed workforce of both on-site and remote employees. Hybrid employees typically split their time between working remotely and going into the workplace. Flexible work arrangements can help improve employees’ work-life balance and reduce turnover.

There are pros and cons for each type of work model, so employers need to weigh the options and find what’s best for them. Specifically, consider how a remote or on-site future might impact worker retention. Regardless of the workplace model, employers need to keep employee retention top of mind when changing or evolving workplace expectations. Flexible working arrangements aren’t ideal for every role, business or industry, so employers will need to explore potential options and trade-offs. As everyone prepares for life on the other side of the pandemic, employers must prioritize employee engagement and well-being in workplace strategies and plans.

Company Culture

Company culture is the personality and environment of an organization. Defined by more than just a mission statement or organizational values, company culture encompasses the unwritten norms of how employees interact with each other. While a poor company culture can be detrimental, strong company culture and employee morale can positively impact recruitment efforts, retention and the organization’s bottom line.

Company culture is critical to post-pandemic success. Culture doesn’t disappear if employees are remote or hybrid; in fact, resilient cultures can even thrive in these environments. The pandemic led many people to think about their values and what matters most to them. That personal reflection is also trickling into the workplace. Workers want to be part of an organization that best matches their personal values. It can’t just be on paper, either. Employees want organizations who put their words into action. Organizations with an authentic mission, values and culture are more likely to win the race for postpandemic talent.

14

Company culture has long been associated with the way interactions take place among employees. For example, strong missions develop a human connection or an idea/behavior that employees can get behind and truly believe. Additionally, company culture is defined by its leadership, communication methods, wellness offerings, environment, corporate vision and social aspects. As it pertains to employee retention, knowing exactly what a company stands for and the culture it wishes to create is crucial to its success and appeal to current and prospective employees.

Remember that a strong workplace culture doesn’t need an actual office to thrive. That is being tested more and more as many organizations change to remote and hybrid workplace models during the pandemic or indefinitely. Location doesn’t matter because authentic culture is based on the values that unify the workplace and employees.

Workplace Safety

Now, more than ever, organizations will be judged not by their words, but by their actions regarding workplace health and safety. Proactive and effective safety efforts may help an organization recruit and retain employees during the pandemic and beyond.

Consider the following ways to help highlight COVID-19 safety efforts to attract and retain employees:

• Survey employees about their needs. Before creating programs or implementing new measures, employers must understand what employees want or need to feel safe in the workplace.

• Establish a safety and health program. Creating initiatives or committees to address workplace safety and health can further document and promote desired behaviors.

• Provide functional and appropriate safety training or education. Employees must understand and follow workplace controls like personal hygiene protocols and personal protective equipment (PPE) usage.

• Include safety-related expectations in job descriptions and postings. This may also provide employers an opportunity to update their perks to include attractive employee benefits like telecommuting, flexible work hours, staggered shifts and hazard pay.

• Prioritize safety in nonemployment-related company branding. Employers should consider dedicating a section of their website or posting on organizational social media channels to highlight how employee health and safety are prioritized during the pandemic and beyond.

It’s vital to keep employees’ health, safety, and well-being in mind when making business decisions. The goal is to remain truthful, empathetic and transparent. That’s what employees want and need in today’s workplace.

Employee Benefits

Employee benefits are vital more than ever and play a key role in retaining employees. When employers can offer a competitive benefits package that meets the needs of their workforce, employees are more likely to stay with that organization.

15

The Pandemic’s Influence on Benefits

Organizations have long recognized the importance of employee benefits, but the COVID-19 pandemic has propelled benefits to the top of employees’ priority lists. The pandemic impacted not just employees, but also their personal needs and their benefits usage.

Beyond the standard offerings of a 401(k) and health insurance, many employees are interested in the introduction or expansion of the following benefits due to the pandemic:

• Mental health resources—The pandemic’s toll on Americans’ collective mental health and wellness has been extensive. Expanding mental health benefits alone can’t combat employee burnout, but they may provide a lifeline that employees need.

o An Employee Assistance Program (EAP) can be tailored to a workforce to provide critical employee resources. An EAP can expand beyond the traditional focus of substance abuse to behavioral health counseling, mental health resources or therapist appointments.

o Telemedicine has been expanding for years to offer employees nonemergency care from the comfort of their own homes. Similarly, telemental health, or online therapy, can be helpful to employees during the pandemic and beyond.

• Flexible work arrangements—Flexible work arrangements can allow employees to balance work and personal responsibilities. Employees often request arrangements that include flextime programs, compressed workweeks, telecommuting, part-time work and job sharing.

• Caregiving support—Balancing work and caregiving responsibilities can be challenging and contributes to decreased productivity, poor mental health and increased employee stress.

Employers can support employees with child and elder care responsibilities by offering initiatives like work-from-home arrangements, workplace flexibility, paid or unpaid family leave, and employer-sponsored child care.

• Voluntary benefits—Typical voluntary benefits include dental coverage, vision insurance, financial counseling, critical illness insurance, life insurance and others. Offerings such as identity theft, pet insurance and critical illness have also risen due to the pandemic. Many voluntary offerings are 100% paid for by employees, but some employers may cover a portion of the premiums. As such, they can be an excellent way to provide meaningful perks to employees without raising costs.

Also, employees are looking for better guidance on how to use their offerings, so it’s important to have a plan to help explain benefits so employees can fully utilize what’s available to them. Employers may also notice increased spouse enrollment, as labor statistics indicate that more spouses stay home due to the

16

pandemic and need coverage. Fortunately, employers are in a great position to highlight their benefits package and their value to employees and their families, which can help retain or attract employees.

Creating a truly competitive employee benefits package can be a struggle—especially for smaller companies—but employers need to dive deep into their current offerings and optimize them for today’s employees to keep their competitive edge. Employers are uniquely positioned to help educate and guide employees about taking advantage of all available resources best.

Retaining Employees With Benefits

Especially in today’s labor market, employers can strategically leverage benefits offerings as employee recruitment and retention tools. Employers should ask employees regularly about benefits usage in order to add or adjust offerings. The goal is to offer attractive and meaningful benefits to keep employees around and gain a competitive edge in today’s labor market.

Not only can survey responses help employers identify gaps in offerings and the overall enrollment process, but then employers can help employees navigate available options and point them toward the appropriate plans.

17

Employee communication can strategically help drive new benefits when done frequently and openly. Organizations that are already finding new ways to innovate and evolve their existing benefits have an advantage in standing out to employees. Much time, effort and resources go into benefit plans, so ensure that employees understand their benefits and how to access or use them.

Summary

Many factors can influence an individual’s decision to remain employed at an organization, including career development opportunities, company culture and values, employee recognition, non-salary or onthe-job perks, management style and work-life balance. Especially in today’s work landscape, a competitive benefits package is necessary to attract and retain workers. The pandemic pushed benefits to the top of employees’ priority lists, and those sentiments aren’t going anywhere anytime soon.

18